From 21 September 1999, a discount of the amount of the capital gain on which income tax is paid is available when the following conditions are met:
- a CGT event occurs after 11.45am (by legal time in the ACT) on 21 September 1999
- the CGT asset was owned for at least 12 months, excluding the days of acquisition and sale
Individuals are entitled to a discount of 50%.
An increase in the discount by up to 10% (in total up to 60%) applies as an incentive for individual resident investors in Affordable Housing from 1 January 2018.
Complying Super Funds are entitled to a discount of 33⅓%
Companies are excluded.
Non Residents Exclusion:
From after 8 May 2012, foreign or temporary residents are generally not entitled to the CGT discount. Any entitlement and gains accrued up to that date are apportioned. See CGT and foreign residents.
Calculating the net capital gain amount on which tax is payable, is required to be done in a specific sequence:
- Available capital losses are deducted before subtracting the discount.
- Small business concessions are applied after the discount.
- Capital Gains Worksheet
- ATO –Working out your capital gain
- ATO – CGT discount for individuals calculator
This page was last modified 2021-05-22